Less than a month after the Sydney Stock exchange announced its intention to press forward with the development of its own open blockchain solution, they have just announced the successful test of their prototype blockchain platform. In partnership with blockchain open source startup Bit Trade Labs, Sydney Stock exchange formed APX Settlement Pty Limited to oversee the project, who announced the latest development. From here they are now looking to further collaboration with cybersecurity experts to ensure security integrity remains intact through the development process.
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Last month the Sydney Stock Exchange (SSX) announced its intention to build a public, open blockchain solution to reduce settlement times for trades and equity transactions within its systems. Less than a month later, and they have just announced that they have successfully tested their prototype blockchain solution.
The announcement was made by APX Settlement Pty Limited, a joint venture between Bit Trade Labs and Sydney Stock Exchange. Bit Trade Labs, a blockchain startup, has been brought to offer their expertise and experience as consultants during the development of this new blockchain. The focus is on an open blockchain rather than the closed system other financial operators are looking at because, as Director of marketing Loretta Joseph says “the banks are effectively trying to build an intranet. If we put a control around who would come into [the internet] and who can’t, we wouldn’t have the internet today”.
After this successful test of the prototype, the development is now moving forward to look at the infrastructure needed to transition the blockchain to a production environment. At the same time, industry assurance and cybersecurity experts are being drafted in to ensure the new blockchain complies with relevant verification requirements and to avoid building in any possible risks.
There are a couple of interesting points about this, the first is that the collaborative approach has produced results quickly. As the Australian government have relaxed competition laws, the Sydney Stock exchange is in effect in competition with rival the Australian Securities Exchange, who are taking a more proprietary closed route. The collaborative open platform has allowed SSX to really produce something tangible very quickly, and looks set to be a major success for them.
Secondly, the focus on blockchain once again brings benefit for the entire cryptocurrency industry. As more crucial systems are rebuilt upon the technology, so the skills necessary to create, maintain and develop blockchain technology grow in value. For businesses within the industry their skillset and expertise is becoming a more valuable commodity over time. Long term, this makes the industry more attractive to investors that can really ensure financial stability for the broader industry.